Relief Package: Stabilisation of Expectations/Entlastungspaket: Stabilisierung der Erwartungen

The sharp rise in energy prices represents a considerable structural risk to the German economy. Deindustrialisation has become a veritable threat. The government's economic policy needs to establish positive expectations for energy costs in the medium term through interventions in the gas and...

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Veröffentlicht in:Wirtschaftsdienst (Hamburg) 2022-10, Vol.102 (10), p.757
1. Verfasser: Huther, Michael
Format: Artikel
Sprache:eng
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Zusammenfassung:The sharp rise in energy prices represents a considerable structural risk to the German economy. Deindustrialisation has become a veritable threat. The government's economic policy needs to establish positive expectations for energy costs in the medium term through interventions in the gas and electricity markets. As in the COV?D-19 pandemic, politicians should give companies generous deferral options for income and sales taxes and partially reimburse advance payments. The elimination of the cold progression does not constitute a tax relief and does not contradict the support of liquidity-weak households with targeted transfers, as both measurements are necessary for different reasons.
ISSN:0043-6275
DOI:10.1007/s10273-022-3303-4